HIGH VALUE PAYMENTS: THE FIRST STOP ON OUR ......Albert Mutonga Matongela Chairperson of SADC-BA HVP Work stream & IPL for Namibia Erastus Hoveka Managing Director of Nedbank Namibia

Angola • Botswana • Lesotho • Democratic Republic of Congo • Namibia Mozambique • South Africa • Swaziland • Zambia • Zimbabwe FOR INTERBANK CIRCULATION

ISSUE 2 • JANUARY 2012

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IN THIS ISSUE

• Welcome & introduction 1• Background and strategic direction 1• Recent developments: 2 Splitting of HVP Work Stream• Inter-Bank Settlement Group: Reps 3• Credit Transfers Requiring Immediate 4 Settlement: Reps• SADC-BA welcomes new participants 5• Upcoming activities 5• Work Stream progress to date 6

HIGH VALUE PAYMENTS: THE FIRST STOP ON OUR JOURNEY

WELCOME & INTRODUCTION

Chaired by the Namibian Bankers Association, the High Value Payments Stream is the focus of this second newsletter to the interbank community. Through this

newsletter readers will be provided with an update on progress achieved in the work stream after extensive meetings and deliberations on a broad range of issues. The newsletter also describes relevant technical payment processes and infrastructures that are to be deployed as payments are settled through the SADC Integration Electronic Settlement System (SIRESS). Readers are encouraged to seek further clarification from their work stream representatives if required. We trust that you will find this newsletter both insightful and thought provoking.

Albert Mutonga Matongela Chairperson of SADC-BA HVP Work stream & IPL for Namibia

Erastus Hoveka Managing Director of Nedbank NamibiaChairperson of Namibian Bankers Association

BACKGROUND AND STRATEGIC DIRECTIONThe CCBG Payments sub-committee has consolidated its focus into the settlement of inter-bank cross-border payment obligations and the related regulatory requirements pertaining thereto.

The SADCBA’s role remains to handle all matters relating to the envisaged SADC cross-border payment instruments. The diagram on the right depicts the demarcated roles of the CCBG and SADCBA as far as settlement and payment processing is concerned.



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The change in emphasis from high value to credit transfers requiring immediate settlement reflects the need to satisfy the business requirements of a number of banking lines-of-business.

There is no argument that large value transfers made in the financial markets and corporate world need to settle in the most optimum risk mitigated environment which, in terms of global best practice is via real time gross settlement systems (RTGS). However other transfers are just as important for end users who need transfers processed and settled on an urgent basis. Often these transfers are for lower amounts than those usually referred to as high value but nevertheless have to meet urgent business requirements. The linking of payments to the settlement of securities transactions is critical as a failure of one payment can have a considerable knock on effect.

The challenge for this work stream is to accommodate the settlement of payment streams that wish to not only use the international standards that have been used up to now but also the more recent international standards that have been developed under the ISO 20022 framework.

A separate challenge for this group is to ensure that the most appropriate settlement facility is used for a particular line-of-business. RESS is expected to provide different settlement services such as a real time line (RTL) liquidity optimising continuous processing line and batch settlement line.

RECENT DEVELOPMENTS

The SADC Banking Association has split the terms of reference of the HVP stream into two separate work groups and they are; 1) The Inter-bank Settlement Group and 2) Credit transfers requiring immediate settlement payment stream. By so doing, members are convinced that they will better align with the strategic direction of the CCBG. This approach will also enable the appropriate level of effort to be applied to the two separate components of the approach ie. payment processing and settlement. Namibia will chair the Interbank Settlement Group and Angola will Chair the Credit Transfers for Immediate Settlement Group.

The SADC Settlement Group will work closely with the CCBG team to ensure from a commercial banking point of view banks clearly know what is expected in terms of funding of their settlement accounts, daily operating timeframes, contents of settlement instructions. The Settlement Group will also work on all the necessary binding agreements and rules to ensure that all transactions are processed in a timely, sound, safe and legal manner.

A further aspect that the group will be involved in is to ensure the commercial banks have appropriate access to information over their accounts and that the data received from SIRESS is processable in the banking systems of commercial banks.

Inter-bank Settlement Group Credit Transfers Requiring Immediate Settlement

SPLITTING OF HVP WORK STREAM



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INTER-BANK SETTLEMENT GROUP: REPS

Leonard DlaminiNedbank SwazilandSwaziland

Owen JonesFirst National Bank LimitedSouth Africa

Realeboha LekhanyanyaStandard Lesotho BankLesotho

Maurice MalondaBICDemocratic Republic of Congo

Denis IvinsFirst National Bank LimitedBotswana

• Robert Kifumbi – BIAC – Democratic Republic of Congo

• Mohau Masia – Standard Lesotho Bank – Lesotho

• Marius Andrew – Bank Windhoek – Namibia

• Busani Mpungose – Nedbank Swaziland Limited – Swaziland

• Ryan Rossam – Standard Bank Limited – South Africa

ALTERNATE REPS

Albert Mutonga Matongela IBSG Chairperson First National Bank NamibiaNamibia

Emilie Steiner Standard Bank NamibaNamibia

David CheweZambian Banker’s AssociationZambia



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CREDIT TRANSFERS REQUIRING IMMEDIATE SETTLEMENT: REPS

Jose Manuel CandidoCTRIS ChairpersonBanco BIC Angola Angola

Brian BobyFNB MalawiMalawi

Thiery MakwalaBGFibank DRCDemocratic Republic of Congo

Jayanta MoodleyNedbank Namibia LimitedNamibia

Owen JonesFirst National Bank LimitedSouth Africa

Busani MpungoseNedbank Swaziland LimitedSwaziland

Realeboha LekhanyaStandard Lesotho BankLesotho

Katila Perera dos Santos Banco Espirito Santo Angola

• Leonard S. Dlamini – Nedbank Swaziland Limited – Swaziland

• Harold Mouton – Bank Windhoek – Namibia

ALTERNATE REPS

NO PHOTO AT TIME OF

PUBLICATION



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IPL for Botswana

Ediretse Ramahobo

CIO, Head of Technology & Operations, Botswana

Standard Chartered Bank

SADC-BA P2P Work Stream Leader

IPL for Angola

Jose Manuel Candido

Executive Director

Banco BIC Angola

SADC-BA Credit Transfers for Immediate Settlement Work Stream Leader

THE SADC-BA WELCOMES NEW PARTICIPANTS

IPL for Malawi

Daniel Mbozi

Head of Operations

Standard Bank Malawi

SADC-BA Bank Notes Work Stream Leader

Date Upcoming Activities First Quarter 2012 Venue23 Jan 2012 Meeting with the Swaziland Bankers Association Mbabane – Swaziland30 Jan 2012 Meeting with the Lesotho Bankers Association Maseru – Lesotho17 Feb 2012 New SADC BA Credit Transfers for Immediate Settlement Work Stream Banking Association’s office - SA17 Feb 2012 New SADC BA Interbank Settlement Work Stream Banking Association’s office - SA20 Feb2012 Third Round SADC BA ATM Work Stream Banking Association’s office - SA20 Feb 2012 Third Round SADC BA Card Work Stream Banking Association’s office - SA20 - 22 Feb 2012 CCBG Payments Subcommittee Legal Workshop Pretoria – South Africa21 Feb 2012 Third Round SADC BA DVP Work Stream Banking Association South Africa21 Feb 2012 Third Round SADC BA Financial Markets Work Stream Banking Association South Africa22 Feb 2012 Third Round SADC BA EFT Credit Work Stream Banking Association South Africa22 Feb 2012 Third Round SADC BA EFT Debit Work Stream Banking Association South Africa24 Feb 2012 Third Round SADC BA Cheque Work Stream Banking Association South Africa24 Feb 2012 Third Round SADC BA Bank Notes Work Stream Banking Association South Africa28 Feb 2012 Meeting with the Zimbabwe Bankers Association Harare - Zimbabwe22 March 2012 Meeting with the Namibian Bankers Association Windhoek - Namibia23 March 2012 SADA BA IPL Meeting Windhoek - Namibia 28 March 2012 Meeting with the Mozambican Bankers Association Maputo - Mozambique29 March 2012 SADC Banking Association Board Meeting Maputo - Mozambique30 March 2012 SADC Banking Association Board Meeting Maputo - Mozambique

UPCOMING ACTIVITIES



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In the next edition, the focus will be on the ATM and Card work streams and more updates.

YOUR SUPPORT TEAM AT THE SADCBA

Juliet Kairuki Arthur Cousins Lungi Mbambo Pat Adams

[email protected] [email protected]:

SADC PAYMENTS PROJECT IS SADC BANKING ASSOCIATION INITIATIVE

The new groups have signed off on their Terms of Reference (TOR) and have provided candidates for these teams. Considerable research has been completed and business and process models are almost complete. Specimen agreements have been obtained and will be evaluated in the near future to establish which elements will be most appropriate for SADC cross-border instruments.

WORK STREAM PROGRESS TO DATE

Documents

HIGH VALUE PAYMENTS: THE FIRST STOP ON OUR ......Albert Mutonga Matongela Chairperson of SADC-BA HVP Work stream & IPL for Namibia Erastus Hoveka Managing Director of Nedbank Namibia